Volkswagen Bank’s inaugural green bond raises €1.5 billion in dual tranches, backed by strong investor demand.
Investor orders exceeded €6.6 billion, signaling robust market confidence in the bank’s sustainable finance strategy.
Proceeds will exclusively finance battery electric vehicle (BEV) products across Volkswagen Group brands.
Volkswagen Bank GmbH has successfully issued its first green bond, raising €1.5 billion through 3-year and 6-year tranches. The bond, aligned with Volkswagen Financial Services AG’s Green Finance Framework, introduces a “senior preferred” format that enhances investor protection by improving positioning in the creditor hierarchy.
Investor interest significantly outpaced expectations, with demand peaking at €6.6 billion from over 300 orders. The bond attracted more than 170 participants during a virtual roadshow, and over 30 investors engaged in deeper discussions.
“We are delighted with the enormous interest investors have shown in our first green bond,” said Oliver Roes, Managing Director of Volkswagen Bank GmbH. “Sustainability has now also become a fully established part of our refinancing mix in line with our Mobility2030 strategy.”
Proceeds from the bond will be used exclusively to refinance financing products for battery electric vehicles (BEVs), reinforcing Volkswagen Bank’s support for the Volkswagen Group’s electrification goals.
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This debut green bond marks a strategic milestone in Volkswagen Bank’s transition toward sustainable mobility and green finance.
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